Shale Daily

NatGas Supplier Plans to Tap Into Constitution Pipeline

Constitution Pipeline Co. LLC said Friday it would work with Leatherstocking Gas Co. LLC, a New York-based natural gas supplier, to pursue agreements to design, build and operate delivery interconnects along the natural gas pipeline's proposed 121-mile route, essentially converting it to an "open access pipeline."

Both companies said they envision local municipalities and public utilities would be able to tap into the pipeline to provide natural gas to residential, commercial and industrial customers.

"[Our] plan is to provide lower cost, clean burning, abundant, domestic natural gas to rural communities," Leatherstocking CEO Mike German said. "Tapping into the Constitution Pipeline would help us achieve that goal."

Leatherstocking, a 50-50 joint venture (JV) between Corning Natural Gas Corp. and Mirabito Holdings Inc., plans to develop a network of natural gas distribution pipelines in counties along and above the New York-Pennsylvania border that currently don't have access to natural gas including New York's Broome, Chenango, Delaware and Madison counties, and Susquehanna County, PA.

Binghamton, NY-based Leatherstocking said it plans to begin building its network next summer, regardless of the status of the Constitution Pipeline, which is planned to be in-service by 2015.

"We believe working with Leatherstocking is a great opportunity for the Constitution Pipeline to potentially facilitate a direct, tangible benefit for communities along the pipeline route," said Constitution Pipeline Project Manager Matt Swift.

Constitution -- a joint venture launched in February by frequent partners Williams Partners LP and Cabot Oil & Gas Corp. (see Shale Daily, Feb. 22) -- is a proposed 30-inch diameter line connecting Susquehanna County to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY, with a transport capacity of 650,000 Dth/d.

Cabot, one of the biggest operators in the Marcellus Shale, has agreed to ship 500,000 Dth/d on the Constitution Pipeline, while Southwestern Energy Services Co. said it would ship 150,000 Dth/d (see Shale Daily, April 27).